Stocks...
Nasd 100…ORH pattern with follow through.
Nasd 100…Pit Weekly…the gap starts @ 4519.50 which matches up with the first swing count target @ 4517. This is an exit zone the first time up.
SPU with 30 Bond overlay…I’m a big fan of watching the Equity/Bond spread as a
key market indicator.After a day like yesterday when everything goes the same direction
I thought I’d take a look at the long term trend which shows lower interest rates have fueled stock rises over the long term time horizon.
The Bond side only shows the new 30 yr contract however if you have an old cash chart the rates have been falling since the Carter administration from a high of over 16%.
The spread tells you which one is leading.
After holding mvg average support early yesterday the spread closed slightly higher on the day. Equities began to lead @ 1 A.M CDT.
GOOGL…765.39 is the weekly ORH #. Sustained price action over this level
will keep the Indices firm.
Bonds..
FX…
Kiwi…after it’s ORH day on Monday Kiwi has been leading all Commodity Currencies.
This looks to complete the ORH qtrly pattern with a close tomorrow over 68.98.
It’s been a good Risk on Indicator and worth watching even if you don’t trade it.
Brazilian Real...another commodity currency that bottomed with Oil.
EWZ…the currencies and the Equity indices show the same pattern.
Currencies lead.
AUD/USD…sometimes it’s helpful to get your head out of the short term maps and do a complete scan to see what’s what.
EWA…19.84 is the Qtrly ORH #.
Commodities…
General Comments or Valuable Insight
The Currencies and Equity Indices were unchanged until just before London’s opening.
Short covering or underweight risk assets is irrelevant.
The above currency patterns are all Risk On indicators.
Index breaks should be shallow going into tomorrow’s close.